January 14, 2025 (NO COMMENTS)

Amazon, Meta and Tesla – three of the so-called magnificent seven tech firms that drive US stock market performance – decline to hedge their day-to-day foreign exchange exposures. So concludes a study by Risk.net of the firms’ quarterly filings over the past five years.

Corporates operating in dozens of countries typically hedge the FX risk from their foreign revenues and expenses with derivatives. But a study of the three companies’ filings shows no evidence of any FX hedging activity. What’s